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According to LCP, the number of higher rate taxpayers is set to soar over the remainder of this parliament. "This is because the Chancellor has frozen the starting point for higher rate tax until 2025/26 at a time when wages and pensions are expected to increase rapidly."
The freeze in tax allowances has led to a big increase in the number of people paying higher rate tax – up nearly 2 million in three years, according to figures from HM Revenue & Customs (HMRC).
The total number of taxpayers was up by 2.5 million in three years and looks set to rise much further in the next two, consultancy LCP said. In 2019/20, the first year of this parliament, the nu...
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